Implications of imposed price ceiling on gasoline

Assignment Help International Economics
Reference no: EM1376403

Scenario 1: Suppose that government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of this action in the gasoline markets?

Scenario 2: Assume that the government imposed a price floor on wages (minimum wage) in order to make sure that workers can earn a living wage. Is this a price floor? What are the economic implications of this action in the labor markets?

Scenario 3: What are the gains and losses of international trade? What happens when tariffs are imposed, in terms of the importing and exporting countries?

Scenario 4: If the government doubled the tax on gasoline, would the tax revenues increase or decrease? Why? Use graphs as needed and explain your answers thoroughly.

 

Reference no: EM1376403

Questions Cloud

Handling international trade payments : Examine the choices MNEs have for handling international trade payments. What are the main issues that affect their decisions? Describe your reasoning.
How heckscher-ohlin theory different from ricardian theory : Discuss and explain how does the Heckscher-Ohlin theory different from Ricardian theory in describing international trade patterns?
First versus second best conditions : The theory of the 2nd best leaves welfare economists high and dry since not only does it abolish established objectives of 1stbest situations,
Quotas effect on international trade : Recognize to what extent tariffs or quotas would affect international trade in whirlpools items. How would you pay for imports, receive payment for exports, and manage exchange rate risk?
Implications of imposed price ceiling on gasoline : Suppose that government imposed a price ceiling on gasoline in order to save prices from getting too high. What are the economic implications of this action in the gasoline markets?
Question about trade restrictions : Provide three arguments for trade restrictions. Since economists do not trade restrictions, make the case as an economist against trade restrictions for these three items.
Find the benefits from restrictions : The firm you work for is expanding its business and would like to start to trade with another nation.
Differences in principle of comparative & absolute advantage : Are there any similarities and differences between the principle of comparative advantage and absolute advantage?
Explain decision center leaders : Jan van der Schmidt was the organizer of a successful chain of restaurants located at Europe. He died unexpectedly at the ages of fifty-five.

Reviews

Write a Review

International Economics Questions & Answers

  Ricardian and ho model

In the Ricardian model, everyone seems to profite from trade. However, the Heckscher-Ohlin model seems to show that some lose from trade as well.

  Determining the price for an acquisition

When determining the value to be paid for an merger, one of the factors considered is often,

  Calculate the value of call option on the pound

Suppose that the spot value of the British pound is $1.55, the annualized thirty day sterling interest rate is 10 percent, the annualized 30-day U.S. interest rate is 8.5 percent,

  Calculates payoffs from buying call

Ms. Smith longs 1 XYZ Feb. 40 Call @ 3 and hold it it to expiration. Suppose no transaction costs, Examine this investment in terms of possible profit or loss. Make a payoff diagram.

  Single product company and multiproduct company

Many corporation manufacture more than one product. What is the motivation to do this and explain how do rules for profit maximization differ between a single product corporation and a multiproduct corporation?

  Determine production level in equilibrium

Jack and May are the only residents of a small island. Jack operates a paper-mill, and has expenses given by MPC = 10+2Q. Jack gets a value of $24 for each unit of paper he sells.

  Discussion on federalism

The U.S. at the end of World War II stood as the world preeminent superpower, with new discovered political and economic wealth. To what degree, if any, has U.S. ascendancy on world stage affected notions of federalism?

  Absolute or comparative advantage in product

Does either country have absolute or comparative advantage in any item? Give support for your answer through computing the "resource costs" or opportunity costs for both products in both countries.

  Discuss differences between the usand czech cultures

Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has make decision to increase his business into the Czech Republic.

  Heckscher ohlin samuelson model and standard trade model

China has fundamental interest in determined outcome itn these negotiations. Givenits relative openness, it has an offensive interest in ensuring a reduce of tariffs for many of its key manufactures in many third nations.

  Question about international trade

China and Japan can manufactures calculators and noodles using land and capital in a competitive market. To manufacture one calculator two units of capital and one unit of land are needed,

  Role of financial systems in promoting economic development

Discuss the role of financial systems in promoting economic development and define microfinance? Discuss in detail its potentials and limitations for reducing poverty and spurring grassroots development in LDC?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd